Huawei Technologies loses trade secret lawsuit against CNEX Labs Inc

According to Paul Shere, CNEX’s spokesman, Huawei’s lawsuit was an effort to acquire “CNEX’s advanced semiconductor technology” through a court action.

In a setback to China’s Huawei, a A U.S. has cleared semiconductor designer CNEX Labs Inc of stealing trade secrets from it and awarded CNEX no damages on its own trade theft claims.

The development comes in the wake of Huawei suing CNEX in U.S. District Court in Sherman, Texas, for misappropriation of trade secrets involving a memory control technology and for poaching its employees; the jury rejected those claims.

The jury also found CNEX failed to notify the company of his patent filings.

“This is a victory for the rule of law and for global standards of ethical corporate behavior,” said CNEX General Counsel Matthew Gloss. “This case was never about money.”

The U.S. has asked its agencies to not source telecommunications equipment from Huawei and has barred U.S. companies from doing business with the Chinese company on the grounds that it poses a threat to national security.

Huawei has filed a lawsuit to overturn the U.S. sales ban before the same Texas judge who heard the trade secrets suit.

Two Huawei units separately face charges in a federal court in Seattle of conspiring to steal T-Mobile US Inc trade secrets between 2012 and 2014.

According to Tim Danks, Huawei’s vice president for risk management, the company is reviewing the decision and weighing its next moves.

“The things that Huawei claims are trade secrets are not,” said CNEX attorney Deron Dacus said in court at the beginning of the trial earlier this month. He further described the lawsuit as “bullying and intimidation.”

The eight-person jury did not award CNEX any damages in its trade theft claims because it did not have any revenue, said a spokesman for CNEX.

Huawei’s suit was an effort to acquire “CNEX’s advanced semiconductor technology” through a court action, said CNEX spokesman Paul Sherer.



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